Significant agreements with related parties

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2011 AND 2010, AND YEARS ENDED DECEMBER 31, 2011 AND 2010 Figures in tables are presented in billions of Rupiah, unless otherwise stated 96

40. TELECOMMUNICATIONS SERVICES TARIFFS continued

b. Mobile cellular telephone tariffs continued

with the following structure: • Connection fee • Monthly charges • Usage charges • Additional facilities fee. The tariffs are determined based on certain formula consisting of: • Network element cost, which is determined using the Long Run Incremental Cost LRIC Bottom up method. • Retail service activity cost plus margin.

c. Interconnection tariffs

The Indonesian Telecommunication Regulatory Body ITRB, in its letter No. 227BRTIXII2010 dated December 31, 2010, decided to implement new interconnect tariffs effective from January 1, 2011 for cellular, satellite and domestic PSTN and effective from July 1, 2011 for fixed wireless access with a limited mobility. Based on Director General of Post and Informatics Decree No. 201KEPDJPPIKOMINFO72011 dated July 29, 2011, ITRB approved the Company’s revision of Reference Interconnection Offer “RIO” regarding to interconnection tariff.

d. Network lease tariff

The Government regulated the form, type and tariff structure and tariff formula for services of network lease through MoCI Decree No. 03PerM.KOMINFO12007 dated January 26, 2007. Pursuant to the MoCI Decree, the Government released Director General of Post and Telecommunication Decision Letter No. 115Dirjen2008 dated March 24, 2008 which stated the agreement on Network Lease Service Type Document, Network Lease Service Tariff, Available Capacity of Network Lease Service, Quality of Network Lease Service and Provision Procedure of Network Lease Service in 2008 Owned by Dominant Network Lease Service Provider in conformity with the Company’s proposal.

e. Tariff for other services

The tariffs for satellite rental and other telephony and multimedia services are determined by the service provider by taking into account the expenditures and market price. The Government only determines the tariff formula for basic telephony services. There is no stipulation for the tariff of other services.